15 Nov 2014

NAB and RP Data provide property insights for investors

Australian capital city home values increased by 9.3% over the past year a new report from National Australia Bank and RP Data shows.

NAB commissioned RP Data to produce the Australian Housing Market Report to help customers who are looking to invest in the property market.

General Manager Home Lending, Melissa Reynolds, said the report provided also provided valuable insights for NAB bankers talking with customers about their investment decisions.

“This report shows home values are continuing to increase, a trend that started in June 2012, but that growth has moderated a little in recent months,” she said.

“In the year to September, Sydney and Melbourne home values increased by 14.3% and 8.1% respectively with Darwin recording a 7.1% increase as the third-best performing capital city.

“NAB bankers help guide our customers when they are making big decisions about their investments and this report will give them valuable insights into the housing market.”

The Australian Housing Market Report shows:

  • The rise in home values has coincided with an increase in property transactions with a 9.8% increase in the number of house and unit sales in the year to July.
  • The two cities with the largest number of sales over the past year have been Sydney and Melbourne while Darwin recorded a lower number of sales despite its increase in home values.
  • The greatest lift in sales during that time happened in Hobart and Brisbane – two cities that have experienced low capital growth.
  • In the year to September, Sydney, Melbourne and Hobart were the only capital cities to record rental growth that outperformed inflation.
  • As at September 2014 the gross rental yield for a capital city house was 3.7% and for a capital city unit was 4.5%.
  • Melbourne and Sydney have the lowest rental yields of any capital city at 3.4% and 3.8% respectively.
  • Darwin and Hobart have the highest yields of all capital cities at 5.9% and 5.2% respectively.

 

The report also reveals the following findings from around Australia:

Sydney

Median house price is $750,000; median unit price is $575,000

Houses in Sydney have gained 14.9% over the year to September, 6.3% annually over the past five years and 3.8% over the past 10 years. Units have gained 11.5%, 5.4% and 3.8% over the same period.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Ramsgate Beach (house) 1,431,322 43.7
Rhodes (house) 1,496,839 43.3
Homebush (house) 1,189,192 42.3
Mays Hill (house) 787,375 42.1
Manly Vale (house) 1,255,521 41.4

Melbourne

Median house price is $590,000; median unit price is $460,000

Houses in Melbourne have gained 8.5% over the year to September, 4.4% annually over the past five years and 6.3% annually over the past 10 years. Units have gained 5.2%, 3.1% and 5.1% over the same period.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Ripponlea (house) 1,043,631 40.9
Middle Park (house) 1,901,783 36.4
Caulfield East (unit) 448,550 32.1
Canterbury (unit) 719,992 30.4
Middle Park (unit) 685,435 29.7

Brisbane

Median house price is $470,000; median unit price is $380,000

Houses in Brisbane have gained 6.7% over the year to September, -0.2% annually over the past five years and 3.5% annually over the past 10 years. Units have gained 3.4%,

-0.5% and 3.7% over the same period.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Dutton Park (unit) 503,851 34.0
Beachmere (unit) 125,103 33.0
Lamb Island (house) 260,247 30.7
Brookwater (unit) 541,261 20.8
Ocean View (house) 617,772 20.7

 

Adelaide

Median house price is $413,000; median unit price is $331,000

Houses in Adelaide have gained 6.1% over the year to September, 1.4% annually over the past five years and 3.9% annually over the past 10 years. Units have gained 1.9%, 0.1% and 3.9% over the same period.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Unley Park (house) 1,426,560 25.9
Felixstow (unit) 368,496 20.4
Henley Beach (unit) 374,801 19.5
Goodwood (house) 710,151 16.4
Kent Town (house) 809,038 16.2

 

Canberra

Median house price is $565,000; median unit price is $396,000

Houses in Canberra have gained 1.6% over the year to September, 2.8% annually over the past five years and 3.7% annually over the past 10 years. Units have gained 3.0%, 1.9% and 3.3% over the same periods.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Weston (unit) 420,544 29.0
Lyons (unit) 349,333 19.6
Mawson (unit) 424,497 19.1
Kingston (house) 1,071,911 18.0
Waramanga (unit) 398,852 15.8

Darwin

Median house price is $600,000; median unit price is $475,000

Houses in Darwin have gained 7.3% over the year to September, 1.9% annually over the past five years and 8.2% annually over the past 10 years. Units have gained 6.3%, 2.9% and 8.3% over the same periods.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Lyons (house) 887,519 42.1
Fannie Bay (unit) 603,352 37.0
Herbert (house) 762,294 21.9
Girraween (house) 852,600 21.0
Humpty Doo (house) 757,375 20.4

Hobart

Median house price is $322,500; median unit price is $250,175

Houses in Hobart have gained 5.0% over the year to September, -1.3% annually over the past five years and 1.8% annually over the past 10 years. Units have gained 0.6%, -0.5% and 3.0% over the same periods.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Clifton Beach (house) 420,052 24.0
Collinsvale (house) 327,730 22.2
Cambridge (house) 451,050 21.2
Snug (house) 328,670 20.1
Otago (house) 560,521 19.5

Perth

Median house price is $530,000; median unit price is $440,000

Houses in Perth have gained 3.2% over the year to September, 1.5% annually over the past five years and 7.0% annually over the past 10 years. Units have gained 4.0%, 1.6% and 6.8% over the same periods.

Top five suburbs for home value growth in the year to July 2014 (houses and units):

Suburb Median value $ Change over year %
Alkimos (house) 416,239 28.6
Coolbinia (house) 1,234,486 21.9
Highgate (house) 830,726 21.8
Kallaroo (unit) 452,565 21.4
Beckenham (unit) 408,947 21.0

 

Source: All above data sourced from RB Data’s report for NAB, Australian Housing Market Report

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